Countries vary systematically with respect to the incentives of politicians to provide broad public goods, and to reduce poverty. Even in developing countries that are democracies, politicians often have incentives to divert resources to political rents, and to private transfers that benefit a few citizens at the expense of many. These distortions can be traced to imperfections in political markets, that are greater in some countries than in others. The authors review the theory, and evidence on the impact of incomplete information of voters, the lack of credibility of political promises, and social polarization on political incentives. They argue that the effects of these imperfections are large, but that their implications are insufficiently integrated into the design of policy reforms aimed at improving the provision of public goods, and reducing poverty.

This volume addresses a central dilemma of our times from a perspective based on lessons from the ground-persistence of structural poverty after sixty years of independence amidst rapid economic growth, widening social anomie, political crisis and failing policy. . The collection presents an alternative school of thought which has been evolved by scholars and activists over decades, in which the poor are presented not as the problem but as an essential resource. Among this volume's distinguishing ideas are: a new role for the poor, raising mass consciousness, a core methodology for transformat.

“Timely and important . . . It should be our North Star for the recovery and beyond.” —Hillary Clinton “Sperling makes a forceful case that only by speaking to matters of the spirit can liberals root their belief in economic justice in people’s deepest aspirations—in their sense of purpose and self-worth.” —The New York Times When Gene Sperling was in charge of coordinating economic policy in the Obama White House, he found himself surprised when serious people in Washington told him that the Obama focus on health care was a distraction because it was “not focused on the economy.” How, he asked, was the fear felt by millions of Americans of being one serious illness away from financial ruin not considered an economic issue? Too often, Sperling found that we measured economic success by metrics like GDP instead of whether the economy was succeeding in lifting up the sense of meaning, purpose, fulfillment, and security of people. In Economic Dignity, Sperling frames the way forward in a time of wrenching change and offers a vision of an economy whose guiding light is the promotion of dignity for all Americans.

From an internationally acclaimed economist, a provocative call to jump-start economic growth by aggressively overhauling liberal democracy Around the world, people who are angry at stagnant wages and growing inequality have rebelled against established governments and turned to political extremes. Liberal democracy, history's greatest engine of growth, now struggles to overcome unprecedented economic headwinds -- from aging populations to scarce resources to unsustainable debt burdens. Hobbled by short-term thinking and ideological dogma, democracies risk falling prey to nationalism and protectionism that will deliver declining living standards. In Edge of Chaos, Dambisa Moyo shows why economic growth is essential to global stability, and why liberal democracies are failing to produce it today. Rather than turning away from democracy, she argues, we must fundamentally reform it. Edge of Chaos presents a radical blueprint for change in order to galvanize growth and ensure the survival of democracy in the twenty-first century.

This volume addresses a central dilemma of our times from a perspective based on lessons from the ground—persistence of structural poverty after sixty years of independence amidst rapid economic growth, widening social anomie, political crisis and failing policy. . The collection presents an alternative school of thought which has been evolved by scholars and activists over decades, in which the poor are presented not as the problem but as an essential resource. Among this volume’s distinguishing ideas are: a new role for the poor, raising mass consciousness, a core methodology for transformation, restructuring the state, pro-poor partnerships for all social constituencies, insistence on holism and values, learning from the poor and new social movements, and eschewing a priori thinking. This perspective powerfully argues the validity and feasibility of sustainable and transformative societal change. . The compilation is rich in lucidly presented case studies and illustrative examples. The strategies advocated would catalyse the process of achieving political and economic democracy at the grassroots and facilitate sustainable development. They would also help in the democratization of the phase of transition and growth. This work is an excellent reference source for development economists and students, researchers and faculty studying governance, poverty and human rights, and issues of security and human rights.

Essays exploring the relationship between economic growth and inequality and the implications for policy makers.

In its history since Independence, India has seen widely different economic experiments: from Jawharlal Nehru's pragmatism to the rigid state socialism of Indira Gandhi to the brisk liberalization of the 1990s. So which strategy best addresses India's, and by extension the world's, greatest moral challenge: lifting a great number of extremely poor people out of poverty? Bhagwati and Panagariya argue forcefully that only one strategy will help the poor to any significant effect: economic growth, led by markets overseen and encouraged by liberal state policies. Their radical message has huge consequences for economists, development NGOs and anti-poverty campaigners worldwide. There are vital lessons here not only for Southeast Asia, but for Africa, Eastern Europe, and anyone who cares that the effort to eradicate poverty is more than just good intentions. If you want it to work, you need growth. With all that implies.